Selling into the Budget Reductions of 2013

Friday, February 17, 2012

Dan Callahan

Real changes are afoot and your company needs to flex with the times. In reading the out-takes from the 2013 federal budget handed down by the executive branch, small businesses serving the Defense and intelligence markets need to tune their offerings in order to be responsive. First, let’s quote Mary Ann Lawlor’s article in AFCEA Magazine’s Signal Connections (2/13/12):

“Part of that [2013 budget] strategy calls for more dependence on next-generation technologies. Accordingly, the budget provides for $3.8 billion for unmanned air systems, $3.4 billion for cyber operations, $9.7 billion in ballistic missile defense, $8 billion for space systems, and $11.9 billion in science and technology. The final figure includes $2.1 billion for basic research.”

And… “The unclassified topline budget requested for the military intelligence program is $19.2 billion.“

I see several ways to bend with this budgetary breeze rather than breaking: (please tell me what I’ve missed!):

ØShow the numbers: indicate downstream specifics, even if they’re assumptions, but this indicates you’ve done some homework;

ØDetermine what aspect of your offering is the most competitive and stress this over your competition;

ØWhen your price is higher than you want it to be, explain which future costs are avoided as a result of choosing your company’s services or product;

ØWhat is the difference between price and cost? Some technologies are more expensive to maintain and operate.

ØCan you sharpen your pencil on future maintenance costs?

If there is expendable margin in your operation, you should be able to shave some of it, if you try. Where are you getting more efficient with your company cost management… can this be passed on to the agency?